Gulf airlines say no interest in Kingfisher stake

* Etihad, Qatar Airways say no interest in Kingfisher

* Kingfisher was in early talks with Qatar Airways - sources

* Indian carrier also talking to WL Ross, one source said

DUBAI/MUMBAI, Feb 9 (Reuters) - Two major Gulf Arab

carriers said they have no interest in taking a stake in

struggling Indian carrier Kingfisher Airlines, which

is grappling with a pile of debt and on the hunt for fresh

equity.

Abu Dhabi's state-owned Etihad Airways and Qatar Airways

said on Thursday they were not inclined to invest in Kingfisher.

Sources in India familiar with the matter told Reuters that

Kingfisher was in early talks with Qatar Airways about a

possible stake in the company. The Indian carrier is also known

to have met officials at Etihad, one source said.

"We have no interest in Kingfisher," a spokesman for Qatar

Airways said.

Etihad's Chief Executive James Hogan told Reuters that they

too had no interest in the Indian carrier. He declined to

elaborate.

Kingfisher, controlled by liquor baron Vijay Mallya, has

said it is in talks with potential investors. Kingfisher

officials did not immediately respond to a request seeking

comment.

The carrier has failed in its long-running efforts to bring

in fresh equity. Its banks are stuck with a quarter of

Kingfisher's shares after a debt recast and lead lender, State

Bank of India, refuses to lend more in the absence of

an equity injection.

The cash-strapped carrier said last month that it had began

talks with SC Lowy Financial, a Hong Kong distressed debt firm,

in a sign it may be running out of more attractive traditional

funding options.

One of the sources said Kingfisher was also talking with

U.S. private equity firm WL Ross. Officials at WL Ross did not

immediately respond to a request for comment.

Backed by sovereign wealth from oil-producing states, Gulf

carriers have been on an aggressive acquisition drive in Europe,

picking up stakes in debt-ridden airline companies.

Etihad, which is owned by Abu Dhabi, increased its stake in

Air Berlin to nearly 30 percent in December and bought

a 40-percent stake in Air Seychelles last month.

Qatar Airways bought a 35 percent stake in freight carrier

Cargolux Airlines International last year.

These fast-growing carriers are seen as key potential

investors in Indian carriers, which are struggling amid fierce

competition. The Indian government is expected soon to allow

foreign carriers to own up to 49 percent in local airlines

(Additional reporting by Stanley Carvalho in Abu Dhabi, Anurag

Kotoky in New Delhi and Greg Roumeliotis in New York; Editing by

Amran Abocar and Shankar Sitaraman)